Higher petrol prices have been linked to rising interest in electric vehicles, based on quoting data from NRMA Insurance. The insurer reports that requests for EV insurance quotes in the first two weeks of March were 15% higher than in the same period in February 2026 and 56% higher than in March of the previous year.
For NRMA Insurance, the latest figures suggest more motorists are seeking to understand how EV ownership compares with internal combustion engine (ICE) vehicles, including on insurance and running costs. Shawn Ticehurst, head of automotive research at NRMA Insurance, linked the increase in quote activity to fuel costs and longer-term household budgeting. “We’re seeing more people request EV insurance quotes, which suggests drivers are exploring EVs as a way to reduce their exposure to volatile fuel prices,” Ticehurst said.
The quoting trend follows NRMA Insurance’s 2024 Changing Gears report, which found only 20% of Australians planning to buy a car in the next five years were considering an EV, with upfront prices, range anxiety, and charging times cited as key concerns. The more recent data indicates some consumers may be reassessing those factors as petrol prices rise and additional EV models become available. Ticehurst said broader model choice is giving buyers more opportunity to compare lifetime costs, and that this is now visible in quote requests and customer inquiries. “We’re seeing attitudes shift as more EV models become available and drivers weigh up the long-term cost of fuel,” he said.
The growth in EV interest coincides with ongoing questions for insurers around repair complexity, parts availability, claims severity, and repair network capability. Ticehurst said perceptions of EV repair and insurance costs are evolving as more vehicles enter the fleet and repairers gain experience. “Concerns about expensive EV repairs and insurance are beginning to shift. While we do experience longer repair times and occasional parts delays for EVs in some instances, these issues are reducing as the industry gains scale and repairers become more skilled. At NRMA Insurance, we’re working with manufacturers to better understand EV repair requirements and upskilling our repair network so we can serve this growing customer base,” Ticehurst said. IAG – the parent company of NRMA Insurance as well as RACQ, RACV, WFI, CGU, and ROLLiN’ – reports that EVs currently account for about 2% of its motor portfolio. The group expects that share to rise to around 10% by 2030 if EV adoption continues to build. Within IAG’s battery EV book, Teslas make up roughly 60% of insured vehicles, with growing volumes from BYD, MG, Hyundai, BMW, and other brands.
The shift in quoting patterns is occurring alongside an increase in EV sales across the Australian new car market. Federal Chamber of Automotive Industries (FCAI) data indicates that battery EVs represented 11.8% of new vehicle sales in February 2026, with 7,715 units registered and total new vehicle deliveries above 90,000 for the month. When additional volumes reported by the Electric Vehicle Council (EVC) are included, total EV sales reached 11,134 units out of 94,131 vehicles in February. EV share has increased from February 2025, when battery EVs accounted for 5.9% of the market.
Over January and February 2026, EV sales totalled 18,543 units, compared with 9,516 over the same period a year earlier. Plug-in hybrid electric vehicles (PHEVs) also recorded higher volumes, with 5,854 units sold in February 2026 versus 4,871 in February 2025. Tesla and BYD led EV sales in February. Tesla delivered more than 3,200 vehicles, while BYD recorded 2,969. Zeekr’s 7X model reported 628 units in its second month on sale. At model level, the Tesla Model Y was the top-selling EV with 2,791 units, followed by the BYD Sealion 7 (1,327), Zeekr 7X (628), Tesla Model 3 (483), and Geely EX5 (416). Other higher-volume EVs included the MG MG4, BYD Atto 3, Omoda Jaecoo J5, BYD Atto 1, BYD Atto 2, and the BYD Seal.
Alongside battery EV growth, the Australian Automobile Association’s (AAA) EV Index shows that conventional hybrids and PHEVs continue to influence the mix of powertrains that insurers underwrite. In the December quarter of 2025, hybrids accounted for 19.13% of new light vehicle sales and PHEVs 5.32%, both the highest quarterly shares recorded for those technologies by the Index. Over the same period, battery EVs represented 9.25% of sales, compared with 9.70% in the previous quarter, while ICE vehicles dropped to 66.30%, their lowest quarterly share in the series.
The index indicates that hybrids have expanded steadily over the past two and a half years. Battery EVs briefly exceeded hybrid sales nationally in the first half of 2023, but hybrids have held a larger share than BEVs in 10 consecutive quarters since. In 2025, hybrid share in the medium car segment rose to 39.22% of Q4 sales, up from 18.78% a year earlier, while BEVs in that segment declined to 34.39% from 58.05%. Hybrids also increased their share in small SUVs (from 13.36% to 23.97% between Q4 2024 and Q4 2025) and people movers (from 10.84% to 21.58%). PHEVs have grown from a relatively small base since Q1 2023, with only two quarters of declining volumes and share. From Q4 2023 to Q4 2025, PHEVs’ share of total new light vehicle sales rose from 1.47% to 5.32%.
